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January
14, 2004
POLYDEX
PHARMACEUTICALS SELLS
UNITED STATES VETERINARY PHARMACEUTICAL BUSINESS
WILL FOCUS ON DEVELOPMENT OF HUMAN PHARMACEUTICAL
PRODUCTS
Toronto, Ontario, January 14, 2004 -- Polydex Pharmaceuticals
Limited (NASDAQ:POLXF) (BSE:PXL) reported today that
it has signed a definitive agreement to sell its United States
finished product veterinary pharmaceutical business, including
substantially all of the assets of its Veterinary Laboratories,
Inc. subsidiary, to its longtime joint venture partner, Sparhawk
Laboratories, Inc., in exchange for $5,500,000 in cash and
an exclusive ten-year commitment from Sparhawk for the purchase
of certain bulk chemicals from a Polydex subsidiary, as well
as a settlement of all outstanding litigation between Polydex
and its subsidiaries and Sparhawk and its shareholders.
George Usher, President, CEO and Chairman of Polydex remarks
that "this is an excellent agreement for both parties
in that we are receiving a good and fair price for the veterinary
business that our Sparhawk partners managed and grew for the
past decade, and the business will remain a valuable client
for the supply of iron and dextran raw materials by us for
years to come. This sale allows us to focus our efforts and
resources on human pharmaceutical research, including further
benefits of our leading human pharmaceutical compound, Ushercell,
than are currently being explored."
Ushercell is a gel formulation originally envisioned for
topical vaginal use primarily in the prevention of unplanned
pregnancies as well as the transmission of AIDS and other
sexually transmitted diseases. As part of the FDA approval
process, several comprehensive studies have been completed
to date to assess Ushercell's safety and tolerance in contraception
and the prevention of HIV and other STDs with the assistance
and financial support of the Contraceptive Research and Development
Program, Consortium for Industrial Collaboration in Contraceptive
Research and Global Microbicide Program (CONRAD).
Additionally, in vitro research has indicated that Ushercell
is effective at inhibiting bacteria commonly associated with
Bacterial Vaginosis, one of the most common vaginal disorders
among reproductive-age women. Mr. Usher states that "we
intend to provide additional funding to the research team
to embark upon research into Bacterial Vaginosis inhibition
immediately, and are committed to increasing the opportunities
to commercialize Ushercell."
Polydex Pharmaceuticals Limited, based in Toronto, Ontario,
Canada, is engaged in the research, manufacture and marketing
of biotechnology-based products. Polydex's business approach
is to research and license potential human pharmaceutical
products to valued partners for final development, thereby
reducing R&D expenditures while retaining a revenue stream
from royalties on successful products. Polydex also manufactures
bulk pharmaceutical intermediates for the worldwide veterinary
pharmaceutical industry. Please visit our updated website
at www.Polydex.com
Note: This press release may contain forward-looking
statements, within the meaning of the United States Securities
Act of 1933, as amended, and the United States Securities
Exchange Act of 1934, as amended, regarding Polydex Pharmaceuticals
Limited. Actual events or results may differ materially from
the Company's expectations, which are subject to a number
of known and unknown risks and uncertainties including but
not limited to changing market conditions, future actions
by the United States Food and Drug Administration or equivalent
foreign regulatory authorities as well as results of pending
or future clinical trials. Other risk factors discussed in
the Company's filings with the United States Securities and
Exchange Commission may also affect the actual results achieved
by the Company.
CONTACT:
Polydex Pharmaceuticals Limited
George G. Usher, President
(416) 755-2231
or e-mail: gu-dextran@rogers.com
Investor
Relations
North Arm Capital Services
Linda Hughes, Toll-free 1-877-945-1621
or e-mail: Linda@northarm.com
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